Shiba Inu (SHIB) is flashing heavy signs that the price is on the verge of a massive breakout from a consolidation phase that has been ongoing since early February. As NewsBTC reported last week, SHIB has been forming an ascending triangle on the 1-day chart since March 10.
The ascending triangle is one of the continuation patterns and signals that the previous trend direction is resumed after a consolidation. The uptrend is the price rally that Shiba Inu initiated on January 1 at $0.00000808, which propelled the price up to $0.00001589 on February 4 (+97%).
After SHIB reached this local high, the meme coin price fell to as low as $0.00000958 on March 10. Since then, however, the Shiba Inu price has been writing higher highs. At the same time, as is characteristic for an ascending triangle formation, the Shiba Inu price showed a flat resistance level at the upper end.
This price level sits at $0.00001151 for SHIB. The bulls haven’t been able to overcome this heavy resistance in eight attempts since early March..However, at the time of writing, SHIB made a new attempt and was trading at $0.00001161 after yesterday’s daily close just above the resistance line.
If SHIB can close above the $0.00001151 resistance today and turn it into support, it could mean that the local high from early February is the next likely price target. A price increase of at least 38% (up to $0.00001591) could thus be on the cards.
In other words, Shiba Inu could resume its uptrend that started in early January. After a two-month consolidation, the bulls could target the August 14, 2022 high of $0.00001787 in the medium term. This would allow for a price gain of over 55% compared to the current price.
However, it is important to note that a breakout from the ascending triangle requires a high trading volume. If the breakout takes place under low volume, it may be a false signal, as some of the recent attempts have shown. This needs to be observed for the moment.
What’s Driving Today’s Shiba Inu Price Breakout?
One reason for the recent rise in Shiba Inu’s price could be the newfound interest from whales. Data from Etherscan.io shows that a newborn whale just made its first SHIB purchase, buying an impressive 3.484 trillion SHIB worth about $39.93 million. With this, the unknown investor has abruptly become the 29th largest holder of SHIB.
Already on Thursday, April 13, the 19th largest Shiba Inu whale had invested $1.88 million to add 171.68 billion SHIB to its portfolio.
New hype for Shiba Inu may also have been generated by an announcement from lead developer Shytoshi Kusama. In a recent Telegram chat, he revealed that the launch of ShibaSwap 2.0 could be imminent in the coming weeks and months. “Ignore anything that says otherwise,” stated Kusama, who did not reveal an exact launch date.
Breaking news: #Shibaswap 2.0 is coming.🚀🚀 pic.twitter.com/tBs7RKy2EN
— SHIB World🔥 🚀 (@SHIB__World) April 16, 2023
Featured image from Nasdaq, chart from TradingView.com